Western Union shares jump 4% as Q3 earnings beat estimates

DENVER - Western Union Company (NYSE:WU) reported third-quarter earnings that exceeded analyst expectations, sending shares up 4.4% as the company’s cost-cutting measures and digital growth helped offset challenges in its retail business.

The global money transfer provider posted adjusted earnings per share of $0.47, surpassing the analyst consensus of $0.43. Revenue came in at $1.03 billion, flat compared to the same period last year and in line with analyst estimates. Adjusted revenue, which excludes Iraq, decreased 1% from the prior year.

Western Union’s Branded Digital revenue grew 7% on a reported basis and 6% on an adjusted basis, with transactions increasing 12% compared to the same quarter last year. The company’s Consumer Services segment showed particularly strong performance, with revenue jumping 49% on both a reported and adjusted basis.

"As we advance our strategy, we are diversifying and making meaningful progress in broadening our Consumer Services offerings, deepening our presence across key markets, and embedding a more efficient operating model to drive sustainable growth," said Devin McGranahan, President and Chief Executive Officer.

The company’s adjusted operating margin improved to 20% from 19% in the prior year period, benefiting from improved cost efficiencies. However, the Consumer Money Transfer segment saw revenue decline 6% on a reported basis, with transactions down 2% compared to the prior year, reflecting weakness in the North America retail business.

Western Union maintained its full-year 2025 guidance, projecting revenue between $4.085 billion and $4.185 billion and adjusted earnings per share of $1.65 to $1.75, in line with analyst expectations of $1.70 per share.

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